Ken Simonson, chief economist for Associated General Contractors of America (AGC), gave the keynote speech titled “Construction ’24: Forbidding or Reason for Cheer?” at METALCON 2023 on October 18-20 at the Las Vegas Convention Center.
There were more than 200 exhibiting companies plus interactive demonstrations and hands-on training. There were 35+ immersive workshops, free learning sessions, and inspiring keynotes providing access to expertise most attendees couldn’t get anywhere else. One of those talks was by Simonson, who is the Chief Economist for The Associated General Contractors of America. In summary, he said, construction is in transition and a slowing economy and rising interest rates are threatening private investment. He also predicted that construction companies were going to need to continue to raise their wages. Overall, he wasn’t predicting gloom and doom, though he couldn’t rule it out, either.
The total nonfarm & construction employment year-over-year change, seasonally adjusted between February 2020 through September 2023 is as follows.
• The percent change of nonresidential construction from February 2020 is +1.6%, and since September 2022 is +3.5%.
• Total nonfarm from February 2020 is +3.0% and from September 2022 is +2.1%.
• Residential construction from February 2020 is +11% and from September 2022 is +1.7%.
Those percentages are seasonally adjusted.
Construction job opening and news hires from August 2001 to August 2023, not seasonally adjusted, is as follows.
• New hires in August 2023 is 361,000; a -7% change from August 2022.
• Job openings in August 2023 were 360,000; a -0.6% change from August 2022.
According to a 2023 AGC of America/Autodesk Workforce Survey, there are two workforce challenges of hourly craft workers. A total of 85% of contractors say they have openings and 88% of contractors with openings report difficulty filling positions.
The following lists the change in construction spending from August 2023 vs. August 2022 in year-over-year % change in current (not inflation-adjusted) dollars, seasonally adjusted:
• Total construction: 7%
• Private residential: -3%
• Nonresidential: 18%
• Highway and street: 13%
• Health care: 12%
• Education: 14%
• Office: 9%
• Transportation: 9%
• Power: 10%
• Commercial: 5%
Simonson said the medium-term outlook is that the economic recovery should continue but the risk of recession remains. Homebuilding appears poised for slow recovery. Multi-family, warehouse, retail, office, and lodging may face a slowdown due to rising rates. Data center and manufacturing construction should remain good; he particularly likes the data center outlook.
The long-term outlook for construction is as follows.
• Finding workers will be a challenge for much longer than materials costs or supply. He added that there’s been a surge in immigrants, but many do not have work papers.
• Slowing demand for K-12 and higher education construction.
• There will be a permanent shift from retail to e-commerce/distribution structures.
• There will be more specialized and online healthcare facilities; meaning few hospitals and nursing homes.
Some of Simonson’s other key takeaways, forecasts and predictions regarding construction trends included:
• Existing home sales have fallen to a 13-year low
• New home sales have fallen to a 13-year low
• In terms of state-by-state employment, 45 states are up from August 22 to August 23
• The construction employment rate fell below 4% between September 2022 and September 2023; it’s now 3.8%
• The industry continues to see job growth.
• Wages are going up faster than inflation.
• Simonson is not optimistic about inflation, saying it’s probably not going to drop from 3% to the target of 2%
• Overall “the balance of risks is for further growth.”
Malco Products (above) was prominent at the show from a new products standpoint, unveiling several cool tools.
- Power Assisted Seamers: This is the fastest seaming machine in the world (max speed of 98 feet per minute), driven with a cordless drill from a standing position for effortless and ergonomic seaming of single and double mechanical lock standing-seam panels.
- Power Assisted Cutters: Demo single or double mechanically locked standing-seam metal roofing panels, operated with a cordless drill from a standing position.
- 1-Station and 2-Station Metal Disc Benders: Finish custom straight or curved metal roofing details like open hems and HVAC ductwork. Available in both large and small models.
- 2-Station Benders: Form 0-100° bends in standing seam roofing. Best for long, continuous straight bends of infinite lengths. Available in 150mm, 200mm and 350mm models.
These products join Malco’s Modular 1-Station Metal Bender, which launched in spring 2023.
New Product Highlights METALCON 20234
AkzoNobel CERAM-A-STAR Frost is a tough and durable two-coat exterior finish based on the superior performance of CERAM-A-STAR 1050, the company’s silicone-modified polyester (SMP) paint systems in North America.
This unique chemistry, using AkzoNobel proprietary resins and special additives, creates a textured coating surface that is not only durable, but easy to apply, fabricate and install. CERAM-A-STAR Frost was formulated in North America and is designed to endure the extreme North American climates.
The Frost product will soon be part of the new Select program, which means it’s part of a standard color palette, allowing for standardizing in the distribution chain and thus faster deliveries.
AkzoNobel also announced the company is upgrading its dealer app and will soon be making it available on Android. We’ll feature the new app in a future issue of the magazine.
Framing Machines Abound
There were more than five cold-formed steel framing machine companies on hand at the show and several are either new or at least not yet well-known to the American market.
Howick, shown at right, is known by most builders for its machines and software that create light-gauge steel metal building frames. Newer to the American market are Framecad (see several photos throughout this issue of the magazine), Livio Metal Building Systems, and Arkitech. Metal Building Software was also on hand with a framing software upgrade that now supports rigid frames and mini storage, and can run on dealer/contractor websites. More on these machines and their software in future issues of Metal Builder.
2023 METALCON Top Products Award Winners
This year’s METALCON Top Products Award winners were invited to nominate their top metal products in one of 15 product categories. To be eligible for consideration, a product must have been introduced to the market after Jan. 1, 2022, and its manufacturer must exhibit. Winners were determined by an electronic vote.
Accessories: S-5! – PVKIT HUR
The S-5! PVKIT HUR is the newest version of the PVKIT solar mounting attachment for metal roofs. It is specifically designed to withstand extremely high wind uplift forces such as hurricane-force winds and is the first metal roof PV mounting system certified to FM4478, FM Approval’s toughest PV Standard. It was tested and certified along with Butler’s MR24 standing seam roof and JA Solar’s module up to 105 pounds per square foot uplift forces and has passed many other stringent tests required for FM4478.
Contractor Tools & Equipment: Wood’s Powr-Grip – MTEX-DC3 Vacuum Lifter
The WPG MTEX-DC3 Vacuum Lifter allows for the safe and efficient installation of oversized and regular insulated metal panels. It allows installers to reconfigure the pad-frame tubes tool-free for either a vertical or horizontal panel project with a load capacity of up to 1200 pounds and panel lengths of up to 50 feet. Available in two versions, an “entry-level” 4-pad model (600-lb load capacity) and an 8-pad version (1200-lb capacity).
Insulation & Weather Barriers: PAC-CLAD – PAC-CLAD HT
PAC-CLAD HT high-temperature, self-adhering roof underlayment, is designed to provide premium waterproofing protection for a variety of roofing applications. This strong, 40-mil, skid-resistant, high-tensile-strength rubberized asphalt membrane is designed to withstand temperatures up to 250°F and is available in either black or white. It will not crack, dry out or become brittle, even under the most extreme weather conditions, resulting in permanent protection and low lifecycle costs.
Paint & Coatings: Chemcoaters – FeGuard
FeGuard is an innovative thin-film, corrosion-inhibiting coating, specifically designed for use on hot-rolled (P&O) and cold-rolled steel substrates. It offers an alternative to galvanized coatings, with performance properties to match. FeGuard’s corrosion-inhibiting package provides a clear, high-gloss finish that allows the brightness of the underlying metal to shine through, while simultaneously slowing corrosive forces.
Rollforming Equipment: Cidan Machinery Group – XTap & XSpace
The XTAP feature revolutionizes conical bending, allowing automatic angled positioning of back gauge fingers with the ProLink control system, ensuring seamless production of gutters and copings, perfect for high-speed manufacturing. For challenging profiles, the XSPACE offers flexibility and convenience. Recessed beneath the bending point, it provides 15mm of additional space, enabling secure folding of hat channels, gutters, and high-pitch drip edge profiles. Equipped with crowning, it guarantees zero angle deviations for long profiles, ensuring precise and consistent folds. The XSPACE handles complex geometries effortlessly, providing safe and accurate results. Compatible with F-, FS- or FX-Series machines.
Roofs: Isaiah Industries, Inc. – Anodized Aluminum Oxford Shingle
Together with Lorin Industries, Isaih Industries introduces the Anodized Aluminum Oxford Shingle. Each panel is anodized, resulting in an incredibly durable protective finish with dozens of possible colors and textures. According to Lorin, anodizing is “an electrochemical process where we grow the anodic layer from the base aluminum.” This newly formed protective layer seals the metal from the elements, improving corrosion resistance and longevity in roofing applications. The new finish, combined with Oxford Shingle’s interlocking panels and hidden fastener system, is a bold new step for residential metal roofing.
Technology: MetalCoffeeShop – MetalTalk
MetalTalk™ is a webinar series that delivers in the Read, Listen or Watch (RLW) format with content being presented to RLW; the only event in the metal construction offering all three platforms. MetalTalk features industry thought leaders, including progressive manufacturers, technology and more.
Walls: Steel Dynamics, Flat Rolled Group – TruSteel HD
TruSteel HD is the first and only continuously digital printed steel available in North America, using real wood images that are printed on coils of Galvalume or Galvanized and rollformed into various panels, providing the beauty of wood with the durability and ease of installation of steel. While there have been prints in the past, the image would repeat every 28-30 inches. With TruSteel HD, the images actually look like real wood and do not repeat for up to 32 feet. This groundbreaking technology has grown and is now used for building siding, interior applications, garage doors and more.
Other: Accurate Perforating, The Essential Partition
Starting with high-quality galvanized steel that is formed and punched to provide a unique look to any outdoor space, the Essential Partition offers the same flexibility as the original SelectSpace line at a lower price. Each panel quickly connects to base plates that allow you to secure it to the ground or leave it as is for maneuverability.
People’s Choice Award Winners
The METALCON People’s Choice Award winners are selected by attendees who voted on site for their top three choice products (among the category winners who were listed on these two pages). The People’s Choice Award winners:
First Place: MetalCoffeeShop – MetalTalk™
MetalTalk™ is a webinar series that delivers in the Read, Listen or Watch (RLW) format with content being presented to RLW; the only event in the metal construction offering all three platforms.
Second Place: S-5! – PVKIT HUR
The S-5! PVKIT HUR is the newest version of the PVKIT solar mounting attachment for metal roofs. It is specifically designed to withstand extremely high wind uplift forces such as hurricane-force winds and is the first metal roof PV mounting system certified to FM4478, FM Approval’s toughest PV Standard.
Third Place: CIDAN – XTap & XSpace
The XTAP feature revolutionizes conical bending, allowing automatic angled positioning of back gauge fingers with the ProLink control system, ensuring seamless production of gutters and copings, perfect for high-speed manufacturing.
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